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MS ignores channel contingencies

MS ignores channel contingencies

Microsoft is so confident it will not be split into two separate companies it will not even consider revising its local distribution model, despite District Court Judge Thomas Penfield's order.

The US District Court Judge approved the Department of Justice's plan to split Microsoft into two firms, with the operating system architecture separate for application software.

It would seem Microsoft is implementing the ostrich technique in response to the ruling, with the managing director of Microsoft Australia, Paul Houghton, stating the company would not consider alternate distribution strategies, even as a worse case scenario.

"We don't expect that the company will split, so we are not contemplating any action," said Houghton. "From a distribution and partner point of view we will continue to move forward. The channel will be unimpacted."Microsoft will not consider alternative distributions strategies on any level, he added."Today's distributors get products from hundreds and thousands of vendors, and that model will not change.

"At the end of the day, our distribution model is simply not on resellers radar screens. Our products stand alone and are very successful in the market because they are good products with good partners supporting them. The Australian channel is very strong, with a robust reseller base."Microsoft will appeal Judge Penfield's order and will also seek a stay in the implementation of the order pending the outcome of the appeal. Houghton said the time frame for the process could take as little as a few months, but would more likely take more than a year to finalise.

"Most of our partners in the marketplace are supportive of our position," Houghton said. "There haven't been any market driven requests to come out with plans and contingencies.

"At the end of the day we have built a model that relies heavily on a strong partner community and we have brought technology together to develop quality products. Why stop a good thing?"Microsoft distributors could not be contacted for comment.


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